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Female Labor Supply With A Discontinuous, Nonconvex Budget Constraint: Incorporation Of A Part-Time/Full-Time Wage Differential

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Author Info

  • Susan L. Averett
  • Julie L. Hotchkiss

Abstract

This paper incorporates the well-documented part-time/fulltime wage differential into an empirical labor supply model with both a heterogeneity- and a random-error term and estimates that model for women in the United States. Incorporation of the part-time/full-time wage differential results in a unique discontinuous, nonconvex budget set, and the consideration of estimation procedures previously unconfronted in the nonlinear budget constraint literature. The full structural representation of the budget constraint is shown to "fit" better than the alternative models estimated, and to yield a predicted hours distribution representative of actual hours. © 1997 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/003465300556878
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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 79 (2000)
Issue (Month): 3 (August)
Pages: 461-470

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Handle: RePEc:tpr:restat:v:79:y:2000:i:3:p:461-470

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Dustmann, Christian & Schmidt, Christoph M., 2000. "The Wage Performance of Immigrant Women: Full-Time Jobs, Part-Time Jobs, and the Role of Selection," IZA Discussion Papers 233, Institute for the Study of Labor (IZA).
  2. Nollenberger, Natalia & Rodríguez-Planas, Núria, 2011. "Child Care, Maternal Employment and Persistence: A Natural Experiment from Spain," IZA Discussion Papers 5888, Institute for the Study of Labor (IZA).
  3. John Baffoe-Bonnie, 2001. "The Impact of Income Taxation on the Labor Supply of Part-time and Full-time Workers," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(1), pages 107-128.
  4. Liu, Kai, 2012. "Explaining the Gender Wage Gap: Estimates from a Dynamic Model of Job Changes and Hours Changes," Discussion Paper Series in Economics 15/2012, Department of Economics, Norwegian School of Economics.
  5. Wolf, Elke, 1998. "Do hours restrictions matter? A discrete family labor supply model with endogenous wages and hours restrictions," ZEW Discussion Papers 98-44, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. John Baffoe-Bonnie, 2004. "Interindustry part-time and full-time wage differentials: regional and national analysis," Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 107-118.

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